Apple Inc. (AAPL): Three Interesting Developments Noted by BAML

Analysts from Bank of Merrill Lynch (BAML) are out with a new research note on Apple Inc. (NASDAQ:AAPL) in regards to memory chips. The analysts note that the have recently observed three interesting developments regarding Apple Inc. (NASDAQ:AAPL): 1) potential introduction of low-end iPhone (US$250-300 ASP likely but high-end 4″ in-cell panel likely embedded similar to current iPhone 5), 2) potential delay of large size new iPhone production (5″ range), and 3) MacBook PC price cut.

BAML believes that the overall impact on memory chips should be mixed given both upside/downside to DRAM and NAND are well anticipated: 1) upside from higher sales volume of iPhone driven by low-end models in emerging markets vs limited memory chip content growth given low-end iPhone promotion; 2) potential problems to get enough 5″ in-cell panels for the high-end iPhone due to low yields or LTPS capacity constraints among LCD makers; and 3) unfavorable implication of MacBook price cut promotion, weaker demand for Apple Inc. (NASDAQ:AAPL)’s PC.

Apple Inc. (NASDAQ:AAPL)’s competitor, Samsung won’t exhibit brand new smartphones at the Mobile World Congress (MWC) 2013 in Barcelona (25-28 Feb). Even LG’s new Optimus model called ‘G Pro’ is scheduled to be unveiled early next week via the firm’s own event ahead of MWC. The Optimus G Pro will embed very powerful tech spec (5.5″ full HD display, quad-core Snapdragon S4 Pro, 2GB DRAM, 13-mega camera, etc). Of course, Samsung’s Galaxy S4 will also debut via Samsung’s own event either in late- March or April, the analysts believe. However, they expect more high spec-based new smartphones/tablets from non-Korean OEMs, particularly from China, at MWC.